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Johnson & Johnson Case Study

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Submitted By ktorres27
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Johnson & Johnson

Over the years Johnson & Johnson has grown substantially due to strategic acquisitions expanding in a wide range of product lines such as Neutrogena in 1994, DePuy in 1998 and Pfizer in 2006. Currently holding over 250 different businesses separated into three divisions: Pharmaceuticals, Medical Devices & Diagnostics, and Consumer products. Historically such divisions have thrived through the decentralized, entrepreneurship culture (Dess, Lumpkin, Eisner, & McNamara, 2014). Nonetheless, impediments such as numerous product recalls, detrimental litigations has now placed Johnson and Johnson’s reputation in jeopardy.

Subsidiary McNeil Consumer Healthcare has had a long history of product recalls, mostly know for the biggest children’s drug recall however coming out with little impact on the corporate reputation. Strong company ethical behaviour was the key to the smooth mergence. Johnson & Johnson showed them prepared to bear the short-term cost in the name of consumer safety. Strongly establishing a basis for trust within customers. On the other hand DePuy’s Orthopaedics unit hip replacement recall, has left not only over 10,000 lawsuits in the US, but has tarnished the name of such a trusted brand (Dess et al, 2014). Incubuses a slow ineffective response to series of problems that predominant in poor quality control inside some of the manufacturing plants. An unsuccessful corrective action plan needed to counter consumers‘ complaints and growing FDA concerns. Resulting in broken consumer trust and tarnished reputation. Johnson and Johnson's mishandling of the recall crisis serves as a reminder of the company's role and responsibility in maintaining safety and promoting public health. As a maker of health care products, Johnson and Johnson has a responsibility to manufacture and distribute products that maintain the health of the...

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